Major US candy company files for bankruptcy just one week before the biggest candy day of the year

CandyWarehouse.com, Inc, a Texas-based online retailer known for its vast selection of sweets and candies, has filed for Chapter 11 bankruptcy, reports The US Sun. The candy company filed for bankruptcy on October 24 just one week before the biggest candy day of the year, also right before Halloween. The Sugar Land–based company filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Northern District of Texas on October 24, 2025. The company listed $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Bankruptcy Observer.

Why has Candy Warehouse filed for bankruptcy?

The US Sun reports that Candy Warehouse in its bankruptcy filing, reported higher liabilities than assets. Candy Warehouse first opened in 1998, serving hotels, hospitals, zoos, restaurants, candy shops and private individuals and small business is built around selling fresh candy, per its website. “We refuse to sell stale, closeout candy—only the best, most delicious sweets make it into our warehouse.”

Candy Warehouse is now insolvent, means it can no longer pay its debts. The candy industry has faced many challenges as consumers spending habits change. One issue plaguing the candy industry is shoppers opting for more health-conscious treats.


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“Consumers are looking for across the board, post-pandemic, ways to get in vitamins or other supplementary dietary needs,” Alina Morse, CEO of Zolli Candy told Snack and Bakery, told The US Sun. “Adults are looking for functional hard candies, with zero sugar, mint, and fruit flavors.”

A 2023 study found that 47% of consumers are seeking out “healthy” candy in order to lower their sugar intake. Another issue faced by the candy industry is shoppers’ distaste for price increases. Some have even noticed that while prices go up, the packaging size goes down.

“Consumers have taken a step back. Larger sizes are fading away, and price sensitivity is playing out. You’re seeing manufacturers starting to trim pack sizes,” Chris Borges, non-chocolate category director for Perfetti Van Melle, owner of the Chupa brand, told Snack and Bakery.

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Consumers opting for chocolate-less candy

Some consumers are choosing chocolate-free candies as cocoa prices continue to rise globally. According to CNN, citing FactSet, cocoa costs increased by 178% in 2024. The spike came after poor harvests in Ghana and the Ivory Coast, which together account for about 60% of the world’s cocoa production. The harvest shortfall was largely linked to the impact of climate change.

Although cocoa prices have eased in 2025, several manufacturers are maintaining higher retail prices because they purchased cocoa at elevated rates during the surge. CNN reported that Hershey’s variety pack prices increased by 22% in 2024, while Reese’s Peanut Butter Cups rose by 8%. Prices for Sour Patch Kids—a non-chocolate candy—also went up by 9.4%.

Hershey told retailers in July that it would increase prices to reflect “the reality of rising ingredient costs including the unprecedented cost of cocoa,” a company spokesperson told Reuters.

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